Trust Fund Loan Program
Loans from the Trust Fund Loan Program (TFLP) are made from the Permanent Coal Tax Trust Fund managed by the Board of Investments. Short and long term loans are both available under this program as they are applicable to credit of the borrower, the type of financing, and the term of the loan. Authority Board approval is required.
General Loan Terms
- Minimum Loan Size: $250,000
- Maximum Loan Size: $1,500,000
- Five years for equipment
- Twenty years for real estate
General Loan Guidelines
- Current ratio in excess of 1:1
- Debt Service coverage in excess of 1:1
- 20% equity preferred
- Positive net-worth/fund balance
Fees
- Origination Fee: 1%
- Authority's attorney fees on a sliding scale
- Borrower out-of-pocket expenses include borrower attorney, recording fees, etc.
- Monthly Loan Service Fee: 50 basis points
- Appraisal and environmental audit fees for real estate loans
Interest Rates
- Trust Fund Loans are based upon the current Board of Investments' Bond Pool Rate, which has been under 7.5% since inception
- 12 month lock-in interest rate with 50% of origination fee (contingent on Board approval)
Expedited Loan Process
- Usually these loans can be processed in 60 days or less. Documents henerally consist of a loan agreement and a security agreement. Contact the Authority for application. Staff may approve the loan, or present to the Authority Board for consideration. The Authority staff will draft the loan documents and the closing will occur through the mail.
